<PAGE>

                                                                EXECUTION COPY



                              SERIES 1999-A SUPPLEMENT

                             dated as of March 17, 1999

                                         to

                              SPREAD ACCOUNT AGREEMENT

                            dated as of March 25, 1993,

                              as amended and restated

                              as of November 19, 1998

                                       among

                               ARCADIA FINANCIAL LTD.

                         ARCADIA RECEIVABLES FINANCE CORP.

                         FINANCIAL SECURITY ASSURANCE INC.

                                        and

                    NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION
<PAGE>

                                 TABLE OF CONTENTS
                                                                            Page

                                     Article I.

                                    DEFINITIONS

<TABLE>
<S>            <C>
Section 1.1    Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Section 1.2    Rules of Interpretation . . . . . . . . . . . . . . . . . . . . .5

                                     Article II.

CREDIT ENHANCEMENT FEE; SERIES SUPPLEMENTS; THE COLLATERAL

Section 2.1    Series 1999-A Credit Enhancement Fee. . . . . . . . . . . . . . .6
Section 2.2    Series Supplements. . . . . . . . . . . . . . . . . . . . . . . .6
Section 2.3    Grant of Security Interest by Arcadia Financial and 
               the Seller. . . . . . . . . . . . . . . . . . . . . . . . . . . .6

                                     Article III.

                                    SPREAD ACCOUNT

Section 3.1    Establishment of Series 1999-A Spread Account; Initial
               Deposit into Series 1999-A Spread Account . . . . . . . . . . . .7
Section 3.2    Spread Account Additional Deposits. . . . . . . . . . . . . . . .8

                                     Article IV.

                                    MISCELLANEOUS

Section 4.1    Further Assurances. . . . . . . . . . . . . . . . . . . . . . . .8
Section 4.2    Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . .8
Section 4.3    Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . . .8
Section 4.4    Headings. . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

               Schedule I
</TABLE>
<PAGE>

                              SERIES 1999-A SUPPLEMENT

     SERIES 1999-A SUPPLEMENT, dated as of March 17, 1999 (the "Series 1999-A 
Supplement"), by and among ARCADIA FINANCIAL LTD., a Minnesota corporation 
("Arcadia Financial"), ARCADIA RECEIVABLES FINANCE CORP., a Delaware 
corporation (the "Seller"), FINANCIAL SECURITY ASSURANCE INC., a New York 
stock insurance company ("Financial Security"), NORWEST BANK MINNESOTA, 
NATIONAL ASSOCIATION, a national banking association, in its capacity as 
Indenture Trustee under the Indenture and as Collateral Agent hereunder.

                                       RECITALS

     1.   The parties hereto have previously entered into a Spread Account 
Agreement, dated as of March 25, 1993, as amended and restated as of November 
19, 1998 (the "Spread Account Agreement"), and, as contemplated by Section 
2.02 of the Spread Account Agreement, this Series 1999-A Supplement 
constitutes a Series Supplement to the Spread Account Agreement so that 
hereafter this Series 1999-A Supplement shall form a part of the Spread 
Account Agreement for all purposes thereof, and all references herein and 
hereafter to the Spread Account Agreement shall mean the Spread Account 
Agreement, as supplemented hereby.

     2.   Arcadia Automobile Receivables Trust, 1999-A (the "Series 1999-A 
Trust") is being formed contemporaneously herewith pursuant to the Series 
1999-A Trust Agreement (as defined herein).

     3.   Pursuant to the Series 1999-A Sale and Servicing Agreement, the 
Seller is selling to the Series 1999-A Trust all of its right, title and 
interest in and to the Initial Receivables (as defined in the Series 1999-A 
Sale and Servicing Agreement) and certain other Trust Property (as defined in 
the Series 1999-A Trust Agreement).

     4.   Pursuant to the Series 1999-A Indenture, the Series 1999-A Trust is 
issuing the Series 1999-A Notes (as defined herein).

     5.   The Seller has requested that Financial Security issue the Series 
1999-A Note Policy to the Trustee to guarantee payment of the Scheduled 
Payments (as deemed in such Policy) on each Payment Date in respect of the 
Series 1999-A Notes.

     6.   In partial consideration of the issuance of the Series 1999-A Note 
Policy, the Seller has agreed that Financial Security shall have certain 
rights as Controlling Party, to the extent set forth in the Spread Account 
Agreement and the Series 1999-A Indenture.

     7.   The Seller is a wholly-owned special purpose subsidiary of Arcadia 
Financial.  The Series 1999-A Trust has agreed to pay the Series 1999-A 
Credit
<PAGE>

Enhancement Fee to the Seller in consideration of the obligations of the 
Seller and Arcadia Financial pursuant hereto and in consideration of the 
obligations of Arcadia Financial pursuant to the Series 1999-A Insurance 
Agreement (such obligations forming part of the Series 1999-A Insurer Secured 
Obligations as referred to herein). The Series 1999-A Insurer Secured 
Obligations form part of the consideration to Financial Security for its 
issuance of the Series 1999-A Note Policy.

     8.   In order to secure the performance of the Series 1999-A Secured 
Obligations, to further effect and enforce the subordination provisions to 
which the Series 1999-A Credit Enhancement Fee is subject, and in 
consideration of the receipt of the Series 1999-A Credit Enhancement Fee, 
Arcadia Financial and the Seller have agreed to pledge the Series 1999-A 
Collateral as Collateral to the Collateral Agent for the benefit of Financial 
Security and for the benefit of the Trustee on behalf of the Trust, upon the 
terms and conditions set forth herein.

                                      AGREEMENTS

     In consideration of the premises, and for other good and valuable 
consideration, the adequacy, receipt and sufficiency of which are hereby 
acknowledged, the parties hereto agree as follows:

                                      ARTICLE I.

                                     DEFINITIONS

          Section 1.1    DEFINITIONS.  All terms defined in Section 1.1 of 
the Series 1999-A Sale and Servicing Agreement shall have the same meaning 
with respect to this Series 1999-A Supplement. The following terms shall have 
the following meanings:

     "COLLECTION ACCOUNT SHORTFALL" means, with respect to Series 1999-A and 
any Distribution Date, the Deficiency Claim Amount, as defined in the Series 
1999-A Sale and Servicing Agreement, with respect to such Distribution Date.

     "DEEMED CURED" means with respect to Series 1999-A, (a) with respect to 
an event that has occurred pursuant to clause (A)(i) of the definition of 
Trigger Event, as of a Determination Date with respect to Series 1999-A, that 
no event as specified in clause (A)(i) of the definition thereof with respect 
to such Series shall have occurred as of such Determination Date or as of any 
of the two consecutively preceding Determination Dates, and (b) with respect 
to an event that has occurred pursuant to clause (A)(ii) or clause (A)(iii) 
of the definition of Trigger Event, as of the next Determination Date which 
occurs in a calendar month which is a multiple of three months succeeding the 
Series 1999-A Closing Date, that no event specified in clause (A)(ii) or 
clause (A)(iii) of the definition of Trigger Event with respect to such 
Series shall have occurred as of such Determination Date.


                                        2
<PAGE>

     "INITIAL PRINCIPAL AMOUNT" means $550,000,000 with respect to Series 
1999-A.

     "INITIAL SPREAD ACCOUNT DEPOSIT" means $0 for Series 1999-A.

     "INITIAL SPREAD ACCOUNT MAXIMUM AMOUNT" means, with respect to Series 
1999-A and any Distribution Date, an amount equal to the greater of (i) 9% of 
the Series 1999-A Balance as of the close of business on such Distribution 
Date and (ii) the Spread Account Minimum Amount as of the close of business 
on such Distribution Date.

     "SERIES 1999-A BALANCE" means, with respect to Series 1999-A and any 
Distribution Date, the aggregate principal amount of the Series 1999-A Notes 
as of such Distribution Date (after giving effect to the distributions in 
respect of principal on the Notes made on such Distribution Date).

     "SERIES 1999-A COLLATERAL" has the meaning specified in Section 2.3(a) 
hereof.

     "SERIES 1999-A CREDIT ENHANCEMENT FEE" means the amount distributable on 
each Distribution Date pursuant to Section 4.6(vi) and (vii) of the Series 
1999-A Sale and Servicing Agreement.

     "SERIES 1999-A INDENTURE" means the Indenture, dated as of March 1, 
1999, among the Series 1999-A Trust, the Trustee and the Indenture Collateral 
Agent.

     "SERIES 1999-A NOTE POLICY" means the financial guaranty insurance 
policy issued by Financial Security with respect to the Series 1999-A Notes.

     "SERIES 1999-A NOTES" means the Class A-1, Class A-2, Class A-3, Class 
A-4 and Class A-5 Notes issued pursuant to the Series 1999-A Indenture.

     "SERIES 1999-A OWNER TRUSTEE" means Wilmington Trust Company, not in its 
individual capacity but solely as Owner Trustee, or its successor in 
interest, and any successor Owner Trustee appointed as provided in the Series 
1999-A Trust Agreement.

     "SERIES 1999-A RECEIVABLE" means each Receivable referenced on the 
Schedule of Receivables attached to the Series 1999-A Sale and Servicing 
Agreement, as supplemented from time to time during the Funding Period by one 
or more Subsequent Transfer Agreements.

     "SERIES 1999-A RESERVE ACCOUNT" means the Reserve Account established 
pursuant to Section 4.1(d) of the Series 1999-A Sale and Servicing Agreement.

     "SERIES 1999-A SALE AND SERVICING AGREEMENT" means the Sale and 
Servicing Agreement, dated as of March 1, 1999, among the Series 1999-A 
Trust, Arcadia Financial, in its individual capacity and as Servicer, the 
Seller and the Backup Servicer, as such agreement may be supplemented, 
amended or modified from time to time.


                                        3
<PAGE>

     "SERIES 1999-A SECURED OBLIGATIONS" means the Insurer Secured 
Obligations and the Trustee Secured Obligations with respect to Series 1999-A.

     "SERIES 1999-A SPREAD ACCOUNT" means the Spread Account established 
pursuant to Section 3.1(a) hereof.

     "SERIES 1999-A SUPPLEMENT" means this Series 1999-A Supplement which 
constitutes a Series Supplement to the Spread Account Agreement.

     "SERIES 1999-A TRUST AGREEMENT" means the Trust Agreement, dated as of 
March 1, 1999, among the Seller, Financial Security and the Series 1999-A 
Owner Trustee.

     "SPREAD ACCOUNT ADDITIONAL DEPOSIT" means, with respect to Series 1999-A 
and any Subsequent Transfer Date, an amount equal to 0.00% of the aggregate 
Principal Balance (as of the related Subsequent Cutoff Date) of the 
Subsequent Receivables being transferred to the Series 1999-A Trust on such 
Subsequent Transfer Date or such greater amount as required by the Rating 
Agencies to confirm that the rating assigned to the Series 1999-A Notes will 
be in the highest category by such Rating Agencies.

     "SPREAD ACCOUNT MAXIMUM AMOUNT" means, with respect to Series 1999-A and 
any Distribution Date:

          (i)   if no Insurance Agreement Event of Default with respect to
     Series 1999-A has occurred and is continuing, no Capture Event has occurred
     and is continuing, no Trigger Event has occurred on the related
     Determination Date, and if any Trigger Event with respect to Series 1999-A
     has occurred as of a prior Determination Date, such Trigger Event is Deemed
     Cured as of the related Determination Date, the Initial Spread Account
     Maximum Amount with respect to Series 1999-A and such Distribution Date;

          (ii)  if an event specified in clause (A) of the definition of Trigger
     Event with respect to Series 1999-A has occurred as of the Determination
     Date or has occurred as of a prior Distribution Date (and whether or not a
     Trigger Event shall occur or shall have occurred in connection with such
     event), and such event is not Deemed Cured as of the related Determination
     Date and no Insurance Agreement Event of Default with respect to Series
     1999-A has occurred and is continuing and no Capture Event has occurred and
     is continuing, the Spread Account Maximum Amount shall be equal to the
     greater of (i) 12% of the Series 1999-A Balance as of the close of business
     on such Distribution Date and (ii) the Spread Account Minimum Amount as of
     the close of business on such Distribution Date; or

          (iii) if (A) an Insurance Agreement Event of Default with respect to
     Series 1999-A has occurred and is continuing or (B) a Capture Event has
     occurred and is continuing as of the related Determination Date, the Spread
     Account Maximum Amount shall be equal to the greater of (i) 25% of the
     Series 1999-A


                                        4
<PAGE>

     Balance as of the close of business on such Distribution Date and (ii) the 
     Spread Account Minimum Amount as of the close of business on such 
     Distribution Date.

     "SPREAD ACCOUNT MINIMUM AMOUNT" means, with respect to Series 1999-A and 
any Distribution Date, an amount equal to the greater of:

          (i)   $100,000, and

          (ii)  the lesser of:

                (A) 2.0% of the Initial Principal Amount of Series 1999-A, and

                (B) the Series 1999-A Balance.

     "TRIGGER EVENT" means, with respect to Series 1999-A and as of a 
Determination Date, the occurrence of any of the events specified in clause 
(A) together with the occurrence of the event specified in clause (B):

     (A)  (i)   the Average Delinquency Ratio for such Determination Date shall
                be 8.31% or greater;

          (ii)  with respect to any Determination Date, the Cumulative Default
                Rate shall be equal to or greater than the percentage set forth
                in Column A of Schedule I attached hereto corresponding to such
                Determination Date;

          (iii) with respect to any Determination Date, the Cumulative Net Loss
                Rate shall be equal to or greater than the percentage set forth
                in Column B of Schedule I attached hereto corresponding to such
                Determination Date;

     (B)  The amount specified with respect to such Series in the last sentence
          of Section 2.09(f) of the Spread Account Agreement is positive on such
          Determination Date, and such amount has not been deposited in the
          related Tag Account on such Determination Date.

          Section 1.2    RULES OF INTERPRETATION.  The terms "hereof," 
"herein," "hereto" or "hereunder," unless otherwise modified by more specific 
reference, shall refer to this Series 1999-A Supplement. Unless otherwise 
indicated in context, the terms "Article," "Section" or "Exhibit" shall refer 
to an Article or Section of, or Exhibit to, this Series 1999-A Supplement. 
The definition of a term shall include the singular, the plural, the past, 
the present, the future, the active and the passive forms of such term. A 
term defined herein and used herein preceded by a Series designation, shall 
mean such term as it relates to the Series designated.


                                        5
<PAGE>

                                     ARTICLE II.

              CREDIT ENHANCEMENT FEE; SERIES SUPPLEMENTS; THE COLLATERAL

          Section 2.1    SERIES 1999-A CREDIT ENHANCEMENT FEE.  The Series 
1999-A Sale and Servicing Agreement provides for the payment to the Seller of 
the Series 1999-A Credit Enhancement Fee, to be paid to the Seller by 
distribution of such amounts to the Collateral Agent for deposit and 
distribution pursuant to this Agreement. The Seller and Arcadia Financial 
hereby agree that payment of the Series 1999-A Credit Enhancement Fee in the 
manner and subject to the conditions set forth herein and in the Series 
1999-A Sale and Servicing Agreement is adequate consideration and the 
exclusive consideration to be received by the Seller or Arcadia Financial for 
the obligations of the Seller pursuant hereto and the obligations of Arcadia 
Financial pursuant hereto (including, without limitation, the transfer by the 
Seller to the Collateral Agent of the Initial Spread Account Deposit with 
respect to Series 1999-A) and pursuant to the Series 1999-A Insurance 
Agreement. The Seller and Arcadia Financial hereby agree with the Trustee and 
with Financial Security that payment of the Series 1999-A Credit Enhancement 
Fee to the Seller is expressly conditioned on subordination of the Series 
1999-A Credit Enhancement Fee to payments on the Notes and Certificates (if 
any) of any Series, payments of amounts due to Financial Security and the 
other obligations of the Trusts, in each case to the extent provided in 
Section 4.6 of the Standard Terms and Conditions or Section 4.6 of the 
related Sale and Servicing Agreement, as applicable, and Section 3.03 of the 
Spread Account Agreement, and the Security Interest of the Secured Parties in 
the Series 1999-A Collateral is intended to effect and enforce such 
subordination and to provide security for the Series 1999-A Secured 
Obligations and subject to the terms hereof the Secured Obligations with 
respect to other Series.

          Section 2.2    SERIES SUPPLEMENTS.  As provided in and subject to 
the conditions specified in Section 2.02 of the Spread Account Agreement, the 
parties hereto are entering into this Series 1999-A Supplement with respect 
to the Series 1999-A Securities.

          Section 2.3    GRANT OF SECURITY INTEREST BY ARCADIA FINANCIAL AND 
THE SELLER.

          (a)    In order to secure the performance of the Secured 
Obligations with respect to each Series, the Seller (and Arcadia Financial, 
to the extent it may have any rights therein) hereby pledges, assigns, 
grants, transfers and conveys to the Collateral Agent, on behalf of and for 
the benefit of the Secured Parties to secure the Secured Obligations, a lien 
on and security interest in (which lien and security interest is intended to 
be prior to all other liens, security interests or other encumbrances), all 
of its right, title and interest in and to the following (all being 
collectively referred to herein as the "Series 1999-A Collateral"):


                                        6
<PAGE>

            (i)    the Series 1999-A Credit Enhancement Fee and all rights and
     remedies that the Seller may have to enforce payment of the Series 1999-A
     Credit Enhancement Fee whether under the Series 1999-A Sale and Servicing
     Agreement or otherwise;

            (ii)    the Series 1999-A Spread Account established pursuant to
     Section 3.1 of this Series 1999-A Supplement and Section 3.01 of the Spread
     Account Agreement, and each other account owned by the Seller and
     maintained by the Collateral Agent (including, without limitation, all
     monies, checks, securities, investments and other documents from time to
     time held in or evidencing any such accounts);

            (iii)    all of the Seller's right, title and interest in and to
     investments made with proceeds of the property described in clauses (i) and
     (ii) above, or made with amounts on deposit in the Series 1999-A Spread
     Account; and

            (iv)    all distributions, revenues, products, substitutions,
     benefits, profits and proceeds, in whatever form, of any of the foregoing.

          (b)    In order to effectuate the provisions and purposes of this 
Series 1999-A Supplement, including for the purpose of perfecting the 
security interests granted hereunder, the Seller represents and warrants that 
it has, prior to the execution of this Series 1999-A Supplement, executed and 
filed an appropriate Uniform Commercial Code financing statement in Minnesota 
sufficient to ensure that the Collateral Agent, as agent for the Secured 
Parties, has a first priority perfected security interest in all Series 
1999-A Collateral which can be perfected by the filing of a financing 
statement.

                                     ARTICLE III.

                                    SPREAD ACCOUNT

          Section 3.1    ESTABLISHMENT OF SERIES 1999-A SPREAD ACCOUNT; 
INITIAL DEPOSIT INTO SERIES 1999-A SPREAD ACCOUNT.

          (a)    On or prior to the Closing Date, the Collateral Agent shall 
establish with respect to Series 1999-A, at its office or at another 
depository institution or trust company, an Eligible Account, designated 
"Spread Account - Series 1999-A - Norwest Bank Minnesota, National 
Association, as Collateral Agent for Financial Security Assurance Inc. and 
another Secured Party" (the "Series 1999-A Spread Account").

          (b)    On the Closing Date relating to Series 1999-A, the 
Collateral Agent shall deposit the Initial Spread Account Deposit with 
respect to Series 1999-A received from the Seller into the Series 1999-A 
Spread Account.


                                        7
<PAGE>

          Section 3.2    SPREAD ACCOUNT ADDITIONAL DEPOSITS.  On each 
Subsequent Transfer Date, the Series 1999-A Trust will, pursuant to Section 
2.4 of the Series 1999-A Sale and Servicing Agreement, deliver on behalf of 
the Seller the Spread Account Additional Deposit for such Subsequent Transfer 
Date to the Collateral Agent. The Collateral Agent shall deposit each such 
Spread Account Additional Deposit received from the Series 1999-A Trust into 
the Series 1999-A Spread Account.

                                     ARTICLE IV.

                                    MISCELLANEOUS

          Section 4.1    FURTHER ASSURANCES.  Each party hereto shall take 
such action and deliver such instruments to any other party hereto, in 
addition to the actions and instruments specifically provided for herein, as 
may be reasonably requested or required to effectuate the purpose or 
provisions of this Series 1999-A Supplement or to confirm or perfect any 
transaction described or contemplated herein.

          Section 4.2    GOVERNING LAW.  This Series 1999-A Supplement shall 
be governed by and construed, and the obligations, rights and remedies of the 
parties hereunder shall be determined, in accordance with the laws of the 
State of New York.

          Section 4.3    COUNTERPARTS.  This Series 1999-A Supplement may be 
executed in two or more counterparts by the parties hereto, and each such 
counterpart shall be considered an original and all such counterparts shall 
constitute one and the same instrument.

          Section 4.4    HEADINGS.  The headings of sections and paragraphs 
and the Table of Contents contained in this Series 1999-A Supplement are 
provided for convenience only. They form no part of this Series 1999-A 
Supplement and shall not affect its construction or interpretation.


                                        8
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Series 1999-A 
Supplement as of the date set forth on the first page hereof.

                                   ARCADIA FINANCIAL LTD.

                                   By: /S/ JOHN A WITHAM
                                       --------------------------------------
                                       Name:     John A. Witham
                                       Title:    Executive Vice President and
                                                 Chief Financial Officer

                                   ARCADIA RECEIVABLES FINANCE CORP.

                                   By: /S/ JOHN A WITHAM
                                       --------------------------------------
                                       Name:     John A. Witham
                                       Title:    Senior Vice President and 
                                                 Chief Financial Officer

                                   FINANCIAL SECURITY ASSURANCE INC.

                                   By: /S/ DAN FARRELL
                                       --------------------------------------
                                       Authorized Officer

                                   NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,
                                       as Trustee

                                   By: /S/ EILEEN R O'CONNOR
                                       --------------------------------------


                                   NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION,
                                       as Collateral Agent

                                   By: /S/ EILEEN R O'CONNOR
                                       --------------------------------------
<PAGE>

                                                                     SCHEDULE I

<TABLE>
<CAPTION>
      Determination Date       Cumulative Default Rate       Cumulative Net Loss Rate
           (month)                  (Column A)                     (Column B)
      <S>                      <C>                           <C>
            0 to 3                     2.11%                          1.05%
            3 to 6                     4.21%                          2.11%
            6 to 9                     6.10%                          3.05%
            9 to 12                    7.79%                          3.90%
           12 to 15                   10.03%                          5.02%
           15 to 18                   12.07%                          6.04%
           18 to 21                   13.85%                          6.93%
           21 to 24                   15.40%                          7.70%
           24 to 27                   16.21%                          8.10%
           27 to 30                   16.86%                          8.43%
           30 to 33                   17.43%                          8.71%
           33 to 36                   17.92%                          8.96%
           36 to 39                   18.15%                          9.08%
           39 to 42                   18.34%                          9.17%
           42 to 45                   18.49%                          9.25%
           45 to 48                   18.62%                          9.31%
           48 to 51                   18.73%                          9.36%
           51 to 54                   18.81%                          9.41%
           54 to 57                   18.88%                          9.44%
           57 to 60                   18.93%                          9.46%
           60 to 63                   18.96%                          9.48%
           63 to 66                   18.98%                          9.49%
           66 to 69                   18.99%                          9.50%
         69 and higher                19.00%                          9.50%
</TABLE>

---------
*    Such Determination Date occurring after the designated calendar months 
succeeding the Series 1999-A Closing Date appearing first in the column 
below, and prior to or during the designated calendar months succeeeding the 
Series 1999-A Distribution Date appearing second in the column below.